Considering That The Two Companies Have A Similar Business Model, Aphria Is Also Looking To Benefit From Canada’s More Lax Stance On Marijuana.

Over the trailing-12-month period, Aphria has generated almost $2.1 million in positive EBITDA. Considering that the two companies have a similar business model, Aphria is also looking to benefit from Canada’s more lax stance on marijuana. Trudeau has previously pledged to lift restrictions on pot, but it remains to be seen if Canada can legalize the drug throughout the country. Through the first half of its current fiscal year, Aphria has already generated more than $2.2 million in EBITDA. An 880-basis-point improvement in adjusted gross margin between Q2 2016 and Q2 2017 is a big reason for that difference. What’s more, it’s well capitalized with $98.6 million in cash and cash equivalents on hand after a $37.2 million bought deal during the second quarter, and it’s commencing on part 3 of its growing space expansion, which will add another 200,000 square feet of space. Though Canopy Growth has the larger operation, the smaller Aphria may prove even more attractive. Personally, I think investors should keep their distance from marijuana stocks, but these are two names to put at the top of their Green Rush radar for now. Sean Williams has no position in any stocks mentioned.